UK coffee shop chain Caffe Nero has bought 26 outlets from its rival Aroma, which is owned by US burger behemoth McDonald’s.
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The new additions, which were purchased at an undisclosed price, will increase Caffe Nero’s store portfolio to 107.
The purchase, which will be completed next month, was revealed as Caffe Nero announced its financial results for the six months to 30 November 2001, during which time sales increased by 68% to £11.3m (US$16.1m) and the group’s pre-tax loss improved by 12% to £760,000.
Gerry Ford, chairman and CEO, commented on the buyout: “The acquisition of the Aroma sites accelerates our expansion considerably. With increased scale, a greater percentage of revenue will now flow through to the profit line.”
Caffe Nero is confident of “substantial growth prospects” for the coffee bar industry, said Ford, and is “uniquely well placed to be a leader in this development”.
US fastfood giant McDonald’s surprised market watchers by buying the 36-strong Aroma chain in 1999 for £10m, but last June it revealed that it would sell off the business.
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By GlobalData
